2023-05-02 13:18:15
(Photo: The Canadian Press)
MARKET REVIEWS. Global markets were mixed on Tuesday morning as investors seemed unshaken by another bank failure in the United States.
The collapse of the First Republic bank had been feared by many since the failure, in March, of the Silicon Valley and Signature banks.
Stock indices at 8 a.m.
The futures contracts Dow Jones posted a decline of 72.00 points (-0.21%) to 34,080.00 points.
The futures contracts S&P 500 lost 8.00 points (-0.19%) to 4,177.75 points.
The futures contracts Nasdaq yielded 10.25 points (-0.08%) to 13,296.50 points.
In London, the FTSE 100 fell 3.55 points (-0.05%) to 7,867.02 points.
In Paris, the CAC 40 fell 38.43 points (-0.51%) to 7,453.07 points.
In Frankfurt, the DAX lost 39.88 points (-0.25%) to 15,882.50 points.
In Asia, the Nikkei de Tokyo collected 34.77 points (+0.12%) at 29,157.95 points.
For his part, the Hang Seng Hong Kong rose 39.24 points (+0.20%) to 19,933.81 points.
On the side of oilthe price of a barrel of US WTI fell by US$0.19 (-0.25%) to US$75.47.
The barrel of Brent from the North Sea fell by US$0.15 (-0.19%) to US$79.16.
The context
The dollar edged higher against the euro on Tuesday, with investors holding their breath as members of the US Federal Reserve (Fed) Monetary Policy Committee (FOMC) begin their meeting.
“The week could be eventful for the euro-dollar pair with the monetary policy decisions of the Fed and the European Central Bank (ECB)”, respectively Wednesday evening and Thursday morning, comments Lukman Otunuga, analyst at FXTM.
On both sides of the Atlantic, central banks are seeking to curb inflation, but to manage faltering economies.
Lately, the dollar has been unsettled by the prospect of a final rate hike on Wednesday, which could be accompanied by a message that there won’t be one at the next meeting.
On the contrary, the persistence of inflation in the euro zone, at 7% over one year in April, could push the ECB to continue to tighten the screw.
This week, “the only question for the ECB is whether the rate hike is 0.25 or 0.50 percentage points,” says Neil Wilson, analyst at Finalto.
Ahead of meetings of the two biggest central banks, the Reserve bank of Australia (RBA) surprised markets on Tuesday by raising rates by 0.25 percentage points to 3.85%, an 11-year high.
The decision “comes even as inflation bends its spine and the RBA did not raise rates in April,” said Victoria Scholar, an analyst at Interactive Investor.
The Australian dollar took 0.88% to 1.4951 Australian dollar for one US dollar and 1.06% to 1.6386 Australian dollar for one euro.
After the Fed and the ECB, the week will not be over for forex traders since the US employment data will be published on Friday.
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